Choosing the right marketing strategy for a company is a crucial thing because it is helping to compete, achieve objectives and concentrate their resources more accurate. To choose the right strategy business has to monitor carefully for external and internal environments that influence the market, usually companies use Marketing Mix to understand what might affect the company inside in the short run and to allocate the capital in the right way, also Pestle analysis helps to monitor the external environment. On the example of JD and JJB sports companies that worked in the same sector I will describe why one succeed and other is failed.
JD expanded trough organic growth and acquisition (First sport and Scotts and then Bank, also French Chausport and Champion sport). They opened new stores in new locations to grow customer base and increase revenues. Their audience are mostly young people. Market orientation (first make product then seeks way to make consumers buy).
Marketing mix (4ps)
They was selling a lifestyle wear for different groups of people who needed trainers and sports fashion as casual day wear. Most of their products are well known brands like….()
The other thing is that usually manufacturers decide which product they will sell to retailers but Jd is different they had so much buying power so the manufacturers were happy to take their ideas(good relations with manufacturer as well)Also manufacturers made some exclusive wear for JD sports that cannot be found anywhere else Examples. Also they did a great job with international manufacturers to make their own exclusive wear. The other good thing is that they checked their suppliers with the Group risk assessments which basically showed if the manufacturer’s activities are in line with Ethical Trade Initiative Base Code. This code showed if the manufacturer has good working conditions and if the products are sourced ethically. So the ethical part of the company is good to for example 423.3 tons of cardboard used in packaging was returned to the Groups distribution center for recycling.
The price for a product will be depended on a number of factors : cost to make it, level of profit require, competitors price and price consumers will be willing to buy. So setting up a price is very important thing that JD did right, they bought in big quantities so their suppliers gave them big discounts so the price they paid to suppliers is cheaper than a small retailer(economy of scale).
JD made their product available for almost all their costumers as their shops located: 1. Well-known streets 2. Out of town 3. Big shopping centres 4. E-commerce
Also JD made the buying process funny and interesting, they innovative displays and design the shop very creative for example they put Table-football for those who is waiting his friend or girlfriend who is choosing cloths. In Cardiff JD won the title of the best UK retailer Interior of the Year.
Also JD is good in monitoring of all stores they have as they has a meetings regularly to look how good the company is doing. The JD Property Committee collect all kind of data about stores performance so they get to know which shops are giving the best return on investments(ACCAUNTS)
Also as the online infrastructure progress JD invested in e-commerce so it is easy to buy products online.
The purpose of the promotion is to make more people to buy your product but not competitors. In other words promotion is used to gain costumers, expand the business and make the brand well-known. The main objective of JD was to position themselves far away from competitors to give it competitive advantage, which mean that good manufacturers will prefer to make a deal and sell their products to JD then other retailers; also it will gain the investors as the brand will be strong, well-known and ethical. JD promotional department uses a mix of both beyond-the-line and above-the-line…